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SB-1130 Property tax postponement: residential dwelling: manufactured homes.(2017-2018)

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Date Published: 04/18/2018 09:00 PM
SB1130:v97#DOCUMENT

Amended  IN  Senate  April 18, 2018
Amended  IN  Senate  March 21, 2018

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Senate Bill No. 1130


Introduced by Senator Leyva
(Principal coauthor: Senator Dodd)
(Coauthor: Senator McGuire)

February 13, 2018


An act to amend Section 16180 Sections 16180, 16210, and 16211.5 of, and to add Section 16180.1 to, the Government Code, and to amend Section 20583 of the Revenue and Taxation Code, relating to taxation, and making an appropriation therefor.


LEGISLATIVE COUNSEL'S DIGEST


SB 1130, as amended, Leyva. Property tax postponement: residential dwelling: manufactured homes.
The Senior Citizens and Disabled Citizens Property Tax Postponement Law authorizes a claimant to file a claim with the Controller to postpone the payment of property taxes that are due on the residential dwelling of the claimant. Existing law, for purposes of that law, defines a “residential dwelling” to mean a dwelling occupied as the principal place of residence of the claimant and owned by the claimant, the claimant and spouse, or by the claimant and another individual, as specified, including condominiums that are assessed as realty for local property tax purposes. Existing law requires a claimant applying for postponement to file a claim under penalty of perjury with the Controller.
This bill would expand the definition of a “residential dwelling” to include manufactured homes, thereby authorizing a claimant who is the owner of a manufactured home to seek postponement of the payment of property taxes under the provisions described above. The bill would create the Senior Citizens and Disabled Citizens Manufactured Homes Property Tax Postponement Account in the Senior Citizens and Disabled Citizens Property Tax Postponement Fund, and would require, commencing July 1, 2019, the revenues in the account to be continuously appropriated to the Controller for, among other things, disbursements relating to the postponement of property taxes on residential dwellings that are manufactured homes.
Existing law continuously appropriates revenues in the Senior Citizens and Disabled Citizens Property Tax Postponement Fund for, among other things, disbursements relating to the postponement of property taxes. Existing law requires the Controller to, on June 30, 2018, and on June 30 each year thereafter, transfer any moneys in the fund in excess of $15,000,000 to the General Fund.
This bill would instead require the Controller, on June 30, 2019, and on June 30 each year thereafter, to transfer any moneys in the fund in excess of $15,000,000 to the Senior Citizens and Disabled Citizens Manufactured Homes Property Tax Postponement Account, as provided, and would require any remaining moneys, after making the transfers to the account, to be transferred to the General Fund.
Existing law requires all sums paid by the Controller to be secured by a lien in favor of the state, when funds are transferred to the county by the Controller, upon the real property for which property taxes have been postponed. Existing law, in the event that the amount secured by the state’s lien is paid by reason of the sale or condemnation of the property on which the lien attaches, requires the funds received to be placed in the Senior Citizens and Disabled Citizens Property Tax Postponement Fund.
This bill would require funds received under the circumstances described above from the sale or condemnation of a residential dwelling that is a manufactured home to be placed in the Senior Citizens and Disabled Citizens Manufactured Homes Property Tax Postponement Fund.
Existing law, in the event that the real property securing the state’s lien is the residential dwelling of a claimant, as specified, and is voluntarily sold, requires the funds derived from the voluntary sale of the residential dwelling to be placed in the Senior Citizens and Disabled Citizens Property Tax Postponement Fund, and prohibits the claimant from drawing upon the amount in the fund.
This bill would require funds received under the circumstances described above from the voluntary sale of a residential dwelling that is a manufactured home to be placed in the Senior Citizens and Disabled Citizens Manufactured Homes Property Tax Postponement Fund, and would prohibit the claimant from drawing upon the amount in the fund.
By increasing the circumstances in which claims for postponement are required to be filed under penalty of perjury, this bill would expand the crime of perjury, thereby imposing a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Vote: 2/3   Appropriation: YES   Fiscal Committee: YES   Local Program: YES  

The people of the State of California do enact as follows:


SECTION 1.

 Section 16180 of the Government Code is amended to read:

16180.
 (a) There is hereby created in the State Treasury a Senior Citizens and Disabled Citizens Property Tax Postponement Fund. The fund shall be an interest-bearing fund. Subject to subdivision (b) and notwithstanding Section 13340, the fund is continuously appropriated to the Controller, commencing January 1, 2015, for purposes of administering this chapter, including, but not limited to, necessary administrative costs and disbursements relating to the postponement of property taxes pursuant to the Property Tax Postponement Law (Chapter 2 (commencing with Section 20581), Chapter 3 (commencing with Section 20625), and Chapter 3.5 (commencing with Section 20640) of Part 10.5 of Division 2 of the Revenue and Taxation Code).
(b) The Controller shall do all of the following:
(1) On June 30, 2017, transfer any moneys in the fund in excess of twenty million dollars ($20,000,000) to the General Fund.
(2) On June 30, 2018, transfer any moneys in the fund in excess of fifteen million dollars ($15,000,000) to the General Fund.
(3) On June 30, 2019, and on June 30 each year thereafter, transfer any moneys in the fund in excess of fifteen million dollars ($15,000,000) as follows:
(A) Transfer the following amounts to the Senior Citizens and Disabled Citizens Manufactured Homes Property Tax Postponement Account:
(i) On June 30, 2019, an amount up to three hundred thousand dollars ($300,000).
(ii) On June 30, 2020, and on June 30 each year thereafter, an amount up to one hundred thousand dollars ($100,000).
(B) After making the transfers required pursuant to subparagraph (A), transfer any remaining moneys to the General Fund.
(c) On or after January 1, 2015, any loan repayments relating to the Senior Citizens and Disabled Citizens Property Tax Postponement Law shall be deposited into the Senior Citizens and Disabled Citizens Property Tax Postponement Fund.
(d) Any funds remaining upon the effective date of this section in an impound account formerly provided for pursuant to this chapter, shall be transferred to the Senior Citizens and Disabled Citizens Property Tax Postponement Fund.

SEC. 2.

 Section 16180.1 is added to the Government Code, to read:

16180.1.
 There is hereby created in the Senior Citizens and Disabled Citizens Property Tax Postponement Fund the Senior Citizens and Disabled Citizens Manufactured Homes Property Tax Postponement Account. The account shall be an interest-bearing account. Notwithstanding Section 13340, the account is continuously appropriated to the Controller, commencing July 1, 2019, for purposes of administering this chapter with regard to residential dwellings that are manufactured homes, including, but not limited to, necessary administrative costs and disbursements relating to the postponement of property taxes pursuant to the Property Tax Postponement Law (Chapter 2 (commencing with Section 20581), Chapter 3 (commencing with Section 20625), and Chapter 3.5 (commencing with Section 20640) of Part 10.5 of Division 2 of the Revenue and Taxation Code).

SEC. 3.

 Section 16210 of the Government Code is amended to read:

16210.
 In the event that the amount secured by the state’s lien provided for in Article 1 (commencing with Section 16180) is paid by reason of the sale or condemnation of the property on which the lien attaches, the funds so received shall be placed in the either of the following:
(a) For a residential dwelling that is not a manufactured home, the Senior Citizens and Disabled Citizens Property Tax Postponement Fund.
(b) For a residential dwelling that is a manufactured home, the Senior Citizens and Disabled Citizens Manufactured Homes Property Tax Postponement Fund.

SEC. 4.

 Section 16211.5 of the Government Code is amended to read:

16211.5.
 (a) (1) In the event that the real property securing the state’s lien provided for in Article 1 (commencing with Section 16180) is the residential dwelling of a claimant under Chapter 2 (commencing with Section 20581) of Part 10.5 of Division 2 of the Revenue and Taxation Code and is voluntarily sold, the funds derived from the voluntary sale of the residential dwelling shall be placed in the either of the following:
(A) For a residential dwelling that is not a manufactured home, the Senior Citizens and Disabled Citizens Property Tax Postponement Fund. At that time, the
(B) For a residential dwelling that is a manufactured home, the Senior Citizens and Disabled Citizens Manufactured Homes Property Tax Postponement Fund.
(2) At the time specified in paragraph (1), the Controller shall release the state’s lien in the manner prescribed by Section 16186.
(b) The claimant under Chapter 2 (commencing with Section 20581) of Part 10.5 of Division 2 of the Revenue and Taxation Code whose residential dwelling was voluntarily sold shall not draw upon the either of the following:
(1) For a residential dwelling that is not a manufactured home, the amount in the Senior Citizens and Disabled Citizens Property Tax Postponement Fund.
(2) For a residential dwelling that is a manufactured home, the amount in the Senior Citizens and Disabled Citizens Manufactured Homes Property Tax Postponement Fund.

SEC. 3.SEC. 5.

 Section 20583 of the Revenue and Taxation Code is amended to read:

20583.
 (a) “Residential dwelling” means a dwelling occupied as the principal place of residence of the claimant and so much of the land surrounding it as is reasonably necessary for use of the dwelling as a home, owned by the claimant, the claimant and spouse, or by the claimant and either another individual eligible for postponement under this chapter or an individual described in subdivision (a), (b), or (c) of Section 20511 and located in this state. It shall include condominiums and manufactured homes that are assessed as realty for local property tax purposes. It also includes part of a multidwelling or multipurpose building and a part of the land upon which it is built.
(b) As used in this chapter in reference to ownership interests in residential dwellings, “owned” includes (1) the interest of a vendee in possession under a land sale contract provided that the contract or memorandum thereof is recorded and only from the date of recordation of the contract or memorandum thereof in the office of the county recorder where the residential dwelling is located, (2) the interest of the holder of a life estate provided that the instrument creating the life estate is recorded and only from the date of recordation of the instrument creating the life estate in the office of the county recorder where the residential dwelling is located, but “owned” does not include the interest of the holder of any remainder interest or the holder of a reversionary interest in the residential dwelling, (3) the interest of a joint tenant or a tenant in common in the residential dwelling or the interest of a tenant where title is held in tenancy by the entirety or a community property interest where title is held as community property, and (4) the interest, including the interest of a beneficiary of a special needs trust, in the residential dwelling in which the title is held in trust, as described in subdivision (d) of Section 62, provided that the Controller determines that the state’s interest is adequately protected.
(c) Except as provided in subdivision (c), and Chapter 3 (commencing with Section 20625), ownership must be evidenced by an instrument duly recorded in the office of the county where the residential dwelling is located.
(d) “Residential dwelling” does not include any of the following:
(1) Any residential dwelling in which the owners do not have an equity of at least 40 percent of the full value of the property as determined for purposes of property taxation or at least 40 percent of the fair market value as determined by the Controller and where the Controller determines that the state’s interest is adequately protected. The 40-percent equity requirement shall be met each time the claimant or authorized agent files a postponement claim.
(2) Any residential dwelling in which the claimant’s interest is held pursuant to a contract of sale or under a life estate, unless the claimant obtains the written consent of the vendor under the contract of sale, or the holder of the reversionary interest upon termination of the life estate, for the postponement of taxes and the creation of a lien on the real property in favor of the state for amounts postponed pursuant to this act.
(3) Any residential dwelling on which the claimant does not receive a secured tax bill.
(4) Any residential dwelling in which the claimant’s interest is held as a possessory interest, except as provided in Chapter 3.5 (commencing with Section 20640).

SEC. 4.SEC. 6.

  No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.